New report by Knight Frank has named high investment yields and effective infrastructure among the keystones of the Dubai real estate market’s future prosperity.
Current rental yields of over 7 per cent put Dubai on a par with other cities, where the return on investment is considered to be the greatest possible. Therefore, according to many surveys, Dubai remains the number one choice among investors seeking for the highest return on their investment in real estate, the report said. This and other factors, according to Knight Frank, should ensure Dubai property sales sector growth in the coming years.
“Looking into the city’s sub-markets, the picture is a bit more positive as well. In-demand areas are mostly in the prime segment including villas, townhouses and apartments in the Palm, Emirates Hills, Dubai Marina and Downtown for example. Even during the 2008 downturn, prime properties saw lower levels of declines compared to less established areas,” said Diaa Noufal, MENA Research, Knight Frank Dubai office.
Dubai and Abu Dhabi developers, government and investors are counting for the UAE population growth of 20% from the current level by 2030, which naturally will lead to economic growth.
The positive economic outlook for Dubai, no doubt, has a real basis: local international airport already serves more than 70 million passengers annually, with capacity set to rise to 200m, and Dubai Jebel Ali port is expected to become the busiest and largest in the world in the next 15 years.
“A more mature market, a better investment return, and a highly connected city all point to a positive future of the property sector in Dubai,” the consultancy states.